Page 11 - gmj146-Jan-Mar-mag-web_neat

www.ddh1.com.au

help us grow our business while we get approvals for Misima.” “At the moment, we can’t say what the increased production will
The PNG project is currently undergoing a DFS, scheduled look like,” he said. “But it is a 400,000 tpa plant and we obviously
for completion in March. The November PFS revealed Misima want to fill that.”
would see a 17-year mine life for 130,000 ozpa at AISC of Exploration at these targets is due to start within two months of
$1,169/oz. completing the mine transaction.
Geotechnical drilling was nearing the finish line at the time of Corbett also said the costs for increasing production at Mineral
print, following the completion of metallurgical test work. Hill were low for the potential reward.
“We’ve now moved into the DFS, and the site works are almost “That’s actually a reasonable budget because Mineral Hill’s
complete in terms of engineering works and environmental history is very high-grade but small deposits,” he said “It doesn’t
programmes,” Corbett said. take a lot to drill these out. We’re not talking about very long
“What people should be looking for is that we’ve updated programmes.
Misima’s resource in September with an indicated 700,000oz. “Over the next two years, we aim to establish a mine plan at
We’ve also already got 1.35 moz in reserves.” Mineral Hill and demonstrate that increase in production and
Mineral Hill is also expected to see expansions under Kingston, then be in a position where we can start to look at funding
with an “aggressive” Misima.”
exploration programme
planned for a number of
promising deposits.
Deposits Pearse, Pearse
North, Southern Ore Zone
and Parkers Hill are among
such targets at the project
that have seen a total of
248km drilled throughout its
history.
Andrew Corbett Previous intercepts include
23m @ 6.49 g/t gold and
296 g/t silver from 91m (Southern Ore Zone) and 6m @ 9.08 g/t
gold and 46.3 g/t silver from 108m (Pearse North).
Recent discoveries at the Pearse deposit have been shallow,
with just 2% of drillholes going deeper than 350m below surface.
The average drill hole depth is 90m.
“We’ll be spending $8 million over two years, roughly $4 million
a year,” Corbett said. “That will be for drilling and mining studies.”
The first two years of Mineral Hill’s production will come from
the reprocessing of tailings, realising 20,000 ozpa. Corbett was
excited for a ramp-up but couldn’t disclose specifics before
further exploration work is completed.

Page 11